Question
Good Evening! Can you please show me how to solve for this problem? Financial statements of Nike, Inc. (NKE) for the years 2018 and 2017
Good Evening!
Can you please show me how to solve for this problem?
Financial statements of Nike, Inc. (NKE) for the years 2018 and 2017 are shown in the following exhibits:
Exhibit 1: Nike, Inc. Income Statement 31 December, 2018 (USD Million)
Revenues 4525
COGS 2123
SG&A Expense 950
EBITDA 1452
Depreciation Expense 320
EBIT 1132
Interest Expense 245
Pretax Income 887
Income Tax (40%) 355
Net Income 532
Exhibit 2: Nike, Inc. Balance Sheet for Fiscal Years Ending 31 December, 2018 and 2017 (USD Million)
2018 2017
Assets
Current Assets
Cash and Equivalents 430 376
Accounts Receivables 892 679
Inventories 911 790
Total Current Assets 2233 1845
Gross Fixed Assets 5130 4356
Accumulated Depreciation 1356 1036
Total Assets 6007 5165
Liabilities and Shareholder's Equity
Current Liabilities
Accounts Payable 679 489
Accrued taxes and expenses 198 132
Notes Payables 511 450
Total Current Liabilities 1388 1271
Long-term Debt 1689 1530
Common Stock 650 650
Retained Earnings 2280 1714
Liabilities and Shareholder's Equity 6007 5165
Estimate Nike's FCFF for 2018.
1) 147.20
2) 220.2
3) 250.0
4) 307.6
Thank you!
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